SBI hiked interest rate by up to 10 basis points on select maturities. This comes in the wake of FD rate hikes undertaken by other major banks like HDFC Bank and ICICI Bank

Guaranteed returns and facility like premature withdrawals make bank FDs one of the most popular investment options in the country. Photo: iStock

New Delhi: India’s largest bank State Bank of India (SBI) recently increased interest rates on fixed deposits or FDs. SBI hiked interest rate by up to 10 basis points on select maturities. This comes in the wake of FD rate hikes undertaken by other major banks like HDFC Bank and ICICI Bank. HDFC Bank had increased rates by up to 50 basis points while ICICI Bank by up to 25 basis points. Banks offer FDs across a broad spectrum of maturities. Guaranteed returns and facility like premature withdrawals make bank FDs one of the most popular investment options in the country.

For FDs with maturity 7-45 days, ICICI is offering 5.50%, 46-184 days 6.25%, 185-289 days 6.50% and 290 days to less than 1 year 6.40%. For FDs with maturity 7-90 days, HDFC is offering 6.25%, 91 days to 1 year 7.30%. Axis Bank is offering an interest rate of 6.25% for FDs with maturity between 46 days and 6 months and 7.1% for fixed deposits ranging between 9 months and 1 year.

On maturity between three to five years, SBI is offering 6.80% interest rate. ICICI and HDFC Banks are offering 7.25% interest rate on fixed deposit maturing between three to five years. Axis Bank is offering 7.25% interest rate on maturity between three to less than five years.

SBI offers an interest rate of 6.85% on FDs with maturity between five years and 10 years. ICICI offers interest rate of 7% on FDs with maturity between five years and 10 years. HDFC Bank offers interest rate of 6.5% on FDs with maturity between five years and 10 years.

For FDs with maturity between five years and 10 years, Axis Bank offers interest rate of 7%.